Author
Topic: Success of Toyota Company (Read 1521 times)

Success of Toyota Company: General Motors of America Established in 1963 at California for the business of car assembly factory. Motive of the company was to takeover the market of Eastern side.

Around 7200 Employee were working during 1987 but the Utilization capacity of this factory was unutilized and as a result the production of the factory was least among the other factory of general motors.

Lab our Union of the factory has submitted around 5000-6000 complaints to the top level. On other side lab our absentee’s ratio was very high. (20%) The Condition was so bad that supervisors use weapon for their self defense. Moreover, employee were drug and alcohol addicted.

In short factory closed on 1982

Entry of Japan Company

After a year in 1983 General motors along with Japan’s company Toyota started the factory again and named “NEW UNITED MOTOR MANUFACTURING INCOOPERATE” (NUMMI).

In this way Toyota company entered in to American car market and learned that manufacturing method of the Japan companies could success or not? Further they learned whether the small car of Japan could capture the market of the America.

Toyota Management

Toyota company had taken the full responsibility of the factory including car designing, product engineering etc. initially they employed around 2500 employee of which 85% belong to closed factory.

Factory manufactured around 65000 nova car in first year and rated first in all small car and lab our absentee’s ratio decreased from 20% to 3%.

Initially it was believed that lab our force of the America is different but later, it was proved wrong. Actually there was no difference in the lab our force of the Japan and American company.

New established company was based on lean (patari) manufacturing system. Here lean mean low supervision and level of management. This factory but more pressure on the 4m power that is – money, manpower, material and machinery.

More ever product inspection was done during the process not after the completion of the process. Target and supervision was done by employee itself and they were reward for the same.

Used JIT (just in time) system and neglect the high level inventory. Most astounded news was that industrial engineer reduced from 82 to 0 in new factory. Various logical and problem solving methods for production were adopted.

Overall summary:

1. Try to find the hided knowledge or talent of an employee.2. Explicit or open knowledge. Welcomed problems and new idea.3. Culture knowledge.